In the fast-paced and competitive world of business, making informed decisions is crucial for sustainable growth and success. This is where secondary market research comes into play, empowering businesses with existing information and data about their market.
In this blog post, we will delve into the realm of secondary market research, exploring its methods, advantages, and disadvantages. Whether you're a budding entrepreneur or a business student eager to expand your knowledge, join us on this journey to unlock the potential of secondary market research.
Learn more by watching the video and reading the blog post below:
The Two Faces of Market Research
When embarking on market research, businesses have two primary options: primary and secondary market research. While primary research collects new data directly from the source, secondary market research, also known as desk research, involves gathering existing data and information. In this post, we will focus on the power of secondary market research in enabling businesses to gain valuable insights into their industry, competitors, and customers.
Internet Research
The phrase "just Google it" has become a common refrain, and for good reason. The internet serves as a treasure trove of information, providing businesses with quick access to a wealth of data. From industry trends to competitor analysis, conducting internet research equips businesses with crucial insights for strategic decision-making. We will explore the diverse sources encompassed by internet research, including online news articles, social media platforms, competitor websites, and more. However, we must be cautious about the abundance of unreliable sources on the internet and learn to discern the trustworthy ones to ensure the validity and reliability of the information.
Market Reports
Market reports are a valuable asset for businesses, offering industry-specific information and data. These reports provide a comprehensive view of market trends, consumer behavior, and potential opportunities, enabling businesses to align their strategies accordingly. While some market reports are freely accessible, others require payment. However, businesses must exercise caution, as the reliability of market reports can vary. We will emphasise the importance of evaluating the credibility and potential biases of the report's source before relying on it for decision-making.
Government Reports
Government reports play a pivotal role in secondary market research, offering extensive data and information that is typically free of charge. Although these reports may lack industry-specific insights, they provide businesses with valuable demographic data and broader trends. From payment behaviors of large businesses to surveys on small and medium-sized enterprises, government reports aid in shaping decisions related to target markets, product development, and employment practices.
Internal Sources of Data
Internal sources of secondary market research provide businesses with exclusive data and information specific to their own operations. Sales reports, historical marketing activities, and loyalty card programs offer businesses unique insights into their customer behaviors, enabling them to fine-tune their strategies. However, internal data has limitations as it quickly becomes outdated and may lack a broader market perspective. Therefore, businesses often complement internal data with other secondary research methods.
Advantages and Disadvantages:
Weighing the Pros and Cons of Secondary Market Research
Secondary market research offers several advantages to businesses. It provides a quick and cost-effective solution, offering industry insights that might not be available through primary research alone. Additionally, secondary research is often pre-analysed, simplifying the process for businesses.
However, it's crucial to be aware of the disadvantages. Secondary research may not always align perfectly with a specific business' needs, and the age of the data should be carefully considered in a fast-paced business environment. Furthermore, businesses should be mindful of potential biases, inaccuracies, and the cost associated with accessing certain data and reports.